Audit Report
Overall Conclusion:
The Gambling Control Board properly safeguarded assets and accurately recorded revenue and expenditures in the state's accounting and payroll systems. Except as noted below, the Gambling Control Board was in compliance with applicable finance-related legal provisions and policies.
Key Finding:
The board inappropriately paid per diems, totaling $3,245, to three board members. Minn. Stat. Section 15.0575 prohibits full-time employees of the state or its political subdivisions from receiving per diem compensation. Counties employed two of the board members; a city employed the third. We recommended that the board obtain repayment of the inappropriate payments, develop procedures to obtain and monitor board member employment information, and revise information sent to board members about per diem compensation.
Agency Background:
The Gambling Control Board regulates lawful gambling in the state of Minnesota. The board's oversight prevents commercialization of the gambling industry, insures integrity of operations, and monitors the use of net profits by gambling organizations. The board issues licenses, gambling permits, and fines. The scope of our audit work at the Gambling Control Board included payroll and other administrative expenditures and license, permit, and fine revenue for the period from July 1, 1995, through June 30, 1999.
Agency Response:
It its response, the Gambling Control Board did not agree with the report's finding; however, they indicated that new procedures will be implemented immediately to ensure per diem compensation is not paid to board members who are employed by the state or political subdivisions.
Financial Audit Reports address internal control weaknesses and noncompliance issues found during our audits of state departments and agencies. The board's response is included in this report.
